Budget : le gouvernement envisage un gel “réversible” des retraites

The French government is considering a reversible "freeze" on pensions, according to a draft of the social security financing bill seen by POLITICO. The measure, subject to approval by the Council of State, would allow for pensions to be frozen or indexed to inflation once they exceed €1,260. While the government could set a specific threshold in a law, as former Prime Minister Édouard Philippe did in 2019 for pensions above €2,000, the current draft proposes a three-tier system without locking in the exact level of revaluations.

According to the plan, pensions below €1,260 would be indexed to inflation, while those between €1,260 and €2,034 would be subjected to sub-indexation or potentially a freeze, depending on the decree. Above €2,034, a future decree would need to establish sub-indexation or a freeze. The government could adjust the threshold as needed, making the measure politically palatable and potentially vote-able. If no decree is passed, sub-indexation or a freeze would take effect by default.

The government aims to present the texts on Thursday, promising that no pension will decrease and that the pace of increases will be decided in Parliament. The draft does not specify any reforms to the pension tax break, which is another potential area for savings. The decree could be issued until October 31, 2027, and would apply retroactively from January 1. This provision allows for the option to revert to a full or partial freeze by the next executive, following the presidential election.